I would like to ask the knowledgeable real estate owners but also everyone in general what you think of our plan.
We have been living in a very nice and now completely renovated and modernized old apartment for rent for 11 years.
Our landlords now want to sell and approached us first. I think the price is totally fair for the location, furnishings and the fact that virtually everything in the apartment has been redone in recent years.
(77sqm old building 4 rooms, 1 is a breakthrough. Large basement for home gym.
Community garden in the backyard.
2015 floors restored, new power lines and distributors, new wallpaper and in the high hallway new ceiling (hanging lower), completely new windows. 2018 Bathroom and kitchen modernized.
2021 new double sized balconies and new gas boiler).
Purchase price: 200.000€
Offer from the agents: € 70,000 in one go, the rest over 10 years in installments directly to them, interest-free and flexible.
My current portfolio provides exactly this one-off payment and the ancillary purchase costs plus a small cash buffer for any repairs that may be necessary.
With the installment to the agent and the house payment, we are €300 below the current rent + savings rate.
I should also add that we are well established here with jobs and a child and the apartment fulfills all our wishes. A possible termination due to personal use by the potential new landlord would hit us hard. The rent is currently still low but could be increased by 15% every 3 years over the next 9 years, only then would it reach the local rate. Which is what I would assume with new landlords.
For me, this is a very good offer, it just leaves me without any capital investment. Which not only takes away my return, but also one of my hobbies. At least for the next 10 years until I have paid off the apartment.
What do you say? Go ahead and sell everything to live rent-free in 10 years?
Thank you very much for reading and I would be grateful for any comments or objections :)
